Categories

Meta

Soaring house prices can be a double-edged sword

There is no doubt that as a nation we are obsessed with house prices. It has become a cliché but sooner or later the cost of property is likely to rear its head at most dinner parties.

And the reason that newspaper editors and broadcasters return to the issue time and time again is because they know it is likely to stir interest and create debate.

The reason that the subject is so close to our heart is that here in the UK we are a nation of homeowners, more so than most other countries in the world.

The Englishman home is not just his castle it is also his investment for the future and many of us view bricks and mortar as a nest egg for our retirement and for our children.

But there are real reasons to be concerned about the housing bubble in the South East and in the capital leading to a severely unbalanced economy where all the nation’s wealth is concentrated in just one region.

Each week there are new stories emerging of property in the capital selling for incredible sums and there is evidence that homeowners are taking advantage of the current situation.

The fact that property costs so much in the capital is testament to the fact London is still an economic powerhouse and has the ability to attract investors from every corner of the globe.

Property is still one of the safest and most profitable investments, there may be occasional blips in the market but the long-term trend in the right locations is always going to be positive.

The soaring cost of property is a great bonus for those who are lucky enough to own a home in London and the South East but there is also a real downside.

Those in low-paid and unskilled work have always struggled to get a foot on the property ladder but the issue is now spreading out into other sections of the population.

Key workers new to London are highly unlikely to be in a position to buy a house or a flat and the same can also be said for white-collar workers. The reality of the current situation is that young professionals now stand very little or no chance of buying their own home in the capital.

Any organisation is reliant on the quality of the people who come to work for it and the same can be said for the capital.

If the large organisations and businesses are unable to recruit the right quality and calibre of staff then they will simply move on to new locations. Cities have to be an attractive proposition in every sense if they are to continue to thrive and prosper.

The key to solving the issue has to be the Government and our financial institutions. What we need is some imaginative thinking and new approaches and solutions to help people become homeowners and enjoy all the benefits that come with it by doing so.